The IMF’s executive board approved a $1.1 billion disbursement for Ukraine on Friday to support the country’s budget amid ongoing conflict.
This funding is part of a 4-year, $15.5 billion program initiated last March, and it marks the latest tranche in the series of loans aimed at stabilizing the war-torn nation.
With this approval, the total funds disbursed to Ukraine since the program’s inception have reached $8.7 billion. IMF Managing Director Kristalina Georgieva highlighted the significant social and economic impact of Russia’s war on Ukraine, noting that despite the ongoing conflict, the country has maintained macroeconomic and financial stability through effective policymaking and substantial external support.
“The economy has remained resilient, despite significant damage to the energy infrastructure, reflecting the continued adaptability of households and firms,” Georgieva stated. She also pointed out that Ukraine had met all relevant targets, including structural reforms concerning tax privileges, public enterprises, and customs.
While the IMF reported that Ukraine’s economy has shown unexpected resilience in the first half of the year, bolstered by strong domestic performance and external aid, it cautioned that the outlook for the rest of the year has deteriorated.
This decline is attributed to ongoing Russian attacks on energy infrastructure and uncertainty surrounding the conflict, leaving the economic outlook fraught with “exceptionally high uncertainty.”
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